Wednesday, 6 February 2019
Monday, 14 January 2019
AFTER 2018: WHAT IS GOING ON? SHOULD WE PANIC?
After significant changes to the Vancouver Real Estate Market in 2018, this is the big question on everyone’s mind. Following several years of unprecedented, meteoric spikes in both sales volume and prices, the levers of government, at all levels, are determined to slow what they see as an overheated and unaffordable housing market ... and the tactics are working. Compared to this time last year, sales are down significantly and prices have seen an uneven road: flattening in some areas, a significant dip in others, stability and even slight increases in certain micro markets.
So how do we look at this? Well, if you are a proponent of healthy, vibrant metro communities, you will be glad to see the dampening of the propensity towards "empty homes", a market scourge that has decimated local communities and risked putting us on the path towards an antiseptic, unfriendly and unaffordable future. If you are a Buyer you may feel challenged by the stricter mortgage rules that rendered your dream home just out of reach, but you should also be buoyed by the fact that the market is turning in your favour, with more choices, more room for negotiation and less anxiety about multiple offers and a “take it or leave it” environment. If you are a Seller, well, you’re probably not too happy right now being on the down side of the peak craziness. But let’s try to look at the upside: if you have owned your home for more than two years you have still gained substantial value in your investment in spite of a value drop from last year. If you’ve owned your property for 5 years or more you are sitting pretty, very likely to have doubled your investment. The challenge for a Seller in this market is to wrap your head around logical pricing and to engage in expert, thorough marketing strategies in cooperation with your real estate professional. With these elements in place you will see your property move eventually, maybe just not over the first weekend.
Regarding the future of our market, I do not present myself as an economic expert. I do, however, follow many who are experts and, in doing so, I strive to find any common thread underlying the hysterics and the bold predictions that we read or hear on a daily basis. I lean towards the idea that the big money has been made in our market for the time being, and that we are heading into a situation that will feature slow growth and a lack of massive pricing spikes, at least for the foreseeable future. In other words, a normal, balanced market may well be on the horizon. A strong job market, the lowering of household debt via stricter mortgage rules, the resort-like quality of the West Coast and a solid flow of new population into our region will, in my opinion, create a solid base for the continuation of a stable housing market.
Let’s all take a deep breath, we’re going to be fine, maybe just a little less rich than we were hoping this year.
For a complete statistics package, including year over year graphs, click here
After significant changes to the Vancouver Real Estate Market in 2018, this is the big question on everyone’s mind. Following several years of unprecedented, meteoric spikes in both sales volume and prices, the levers of government, at all levels, are determined to slow what they see as an overheated and unaffordable housing market ... and the tactics are working. Compared to this time last year, sales are down significantly and prices have seen an uneven road: flattening in some areas, a significant dip in others, stability and even slight increases in certain micro markets.
So how do we look at this? Well, if you are a proponent of healthy, vibrant metro communities, you will be glad to see the dampening of the propensity towards "empty homes", a market scourge that has decimated local communities and risked putting us on the path towards an antiseptic, unfriendly and unaffordable future. If you are a Buyer you may feel challenged by the stricter mortgage rules that rendered your dream home just out of reach, but you should also be buoyed by the fact that the market is turning in your favour, with more choices, more room for negotiation and less anxiety about multiple offers and a “take it or leave it” environment. If you are a Seller, well, you’re probably not too happy right now being on the down side of the peak craziness. But let’s try to look at the upside: if you have owned your home for more than two years you have still gained substantial value in your investment in spite of a value drop from last year. If you’ve owned your property for 5 years or more you are sitting pretty, very likely to have doubled your investment. The challenge for a Seller in this market is to wrap your head around logical pricing and to engage in expert, thorough marketing strategies in cooperation with your real estate professional. With these elements in place you will see your property move eventually, maybe just not over the first weekend.
Regarding the future of our market, I do not present myself as an economic expert. I do, however, follow many who are experts and, in doing so, I strive to find any common thread underlying the hysterics and the bold predictions that we read or hear on a daily basis. I lean towards the idea that the big money has been made in our market for the time being, and that we are heading into a situation that will feature slow growth and a lack of massive pricing spikes, at least for the foreseeable future. In other words, a normal, balanced market may well be on the horizon. A strong job market, the lowering of household debt via stricter mortgage rules, the resort-like quality of the West Coast and a solid flow of new population into our region will, in my opinion, create a solid base for the continuation of a stable housing market.
Let’s all take a deep breath, we’re going to be fine, maybe just a little less rich than we were hoping this year.
For a complete statistics package, including year over year graphs, click here
Wednesday, 7 November 2018
To see a full statistics package for all of Metro Vancouver Click Here
The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,966 in October 2018, a 34.9 per cent decrease from the 3,022 sales recorded in October 2017, and a 23.3 per cent increase compared to September 2018 when 1,595 homes sold.
Last month’s sales were 26.8 per cent below the 10-year October sales average.
“The supply of homes for sale today is beginning to return to levels that we haven’t seen in our market in about four years,” Phil Moore, REBGV president said. “For home buyers, this means you have more selection to choose from. For sellers, it means your home may face more competition, from other listings, in the marketplace.”
There were 4,873 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2018. This represents a 7.4 per cent increase compared to the 4,539 homes listed in October 2017 and a 7.7 per cent decrease compared to September 2018 when 5,279 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,984, a 42.1 per cent increase compared to October 2017 (9,137) and a 0.8 per cent decrease compared to September 2018 (13,084).
For all property types, the sales-to-active listings ratio for October 2018 is 15.1 per cent. By property type, the ratio is 10.3 per cent for detached homes, 17.3 per cent for townhomes, and 20.6 per cent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“Home prices have edged down between three and five per cent, depending on housing type, in our region since June,” said Moore. “This is providing a little relief for those looking to buy compared to the all-time highs we’ve experienced over the last year.”
The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $1,062,100. This represents a one per cent increase over October 2017 and a 3.3 per cent decrease over the last three months.
Sales of detached homes in October 2018 reached 637, a 32.2 per cent decrease from the 940 detached sales recorded in October 2017. The benchmark price for detached properties is $1,524,000. This represents a 5.1 per cent decrease from October 2017 and a 3.9 per cent decrease over the last three months.
Sales of apartments reached 985 in October 2018, a 35.7 per cent decrease compared to the 1,532 sales in October 2017. The benchmark price of an apartment property is $683,500. This represents a 5.8 per cent increase from October 2017 and a 3.1 per cent decrease over the last three months.
Attached homes sales in October 2018 totalled 344, a 37.5 per cent decrease compared to the 550 sales in October 2017. The benchmark price of an attached home is $829,200. This represents a 4.4 per cent increase from October 2017 and a 2.8 per cent decrease over the last three months.
To see a full statistics package for all of Metro Vancouver Click Here
Home listings at four-year October high as sales remain below typical levels
Home sale activity across Metro Vancouver* remained below long-term historical averages in October.The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 1,966 in October 2018, a 34.9 per cent decrease from the 3,022 sales recorded in October 2017, and a 23.3 per cent increase compared to September 2018 when 1,595 homes sold.
Last month’s sales were 26.8 per cent below the 10-year October sales average.
“The supply of homes for sale today is beginning to return to levels that we haven’t seen in our market in about four years,” Phil Moore, REBGV president said. “For home buyers, this means you have more selection to choose from. For sellers, it means your home may face more competition, from other listings, in the marketplace.”
There were 4,873 detached, attached and apartment homes newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in October 2018. This represents a 7.4 per cent increase compared to the 4,539 homes listed in October 2017 and a 7.7 per cent decrease compared to September 2018 when 5,279 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 12,984, a 42.1 per cent increase compared to October 2017 (9,137) and a 0.8 per cent decrease compared to September 2018 (13,084).
For all property types, the sales-to-active listings ratio for October 2018 is 15.1 per cent. By property type, the ratio is 10.3 per cent for detached homes, 17.3 per cent for townhomes, and 20.6 per cent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“Home prices have edged down between three and five per cent, depending on housing type, in our region since June,” said Moore. “This is providing a little relief for those looking to buy compared to the all-time highs we’ve experienced over the last year.”
The MLS® Home Price Index composite benchmark price for all residential homes in Metro Vancouver is currently $1,062,100. This represents a one per cent increase over October 2017 and a 3.3 per cent decrease over the last three months.
Sales of detached homes in October 2018 reached 637, a 32.2 per cent decrease from the 940 detached sales recorded in October 2017. The benchmark price for detached properties is $1,524,000. This represents a 5.1 per cent decrease from October 2017 and a 3.9 per cent decrease over the last three months.
Sales of apartments reached 985 in October 2018, a 35.7 per cent decrease compared to the 1,532 sales in October 2017. The benchmark price of an apartment property is $683,500. This represents a 5.8 per cent increase from October 2017 and a 3.1 per cent decrease over the last three months.
Attached homes sales in October 2018 totalled 344, a 37.5 per cent decrease compared to the 550 sales in October 2017. The benchmark price of an attached home is $829,200. This represents a 4.4 per cent increase from October 2017 and a 2.8 per cent decrease over the last three months.
To see a full statistics package for all of Metro Vancouver Click Here
Thursday, 5 July 2018
Home seller supply grows as demand declines
With home sale activity dipping below long-term historical averages, the supply of homes for sale in Metro Vancouver reached a three-year high in June.The Real Estate Board of Greater Vancouver (REBGV) reports that residential home sales in the region totalled 2,425 in June 2018, a 37.7 per cent decline from the 3,893 sales recorded in June 2017, and a 14.4 per cent decrease compared to May 2018 when 2,833 homes sold.
Last month’s sales were 28.7 per cent below the 10-year June sales average.
“Buyers are less active today. This is allowing the supply of homes for sale to accumulate to levels we haven’t seen in the last few years,” Phil Moore, REBGV president said. “Rising interest rates, high prices and more restrictive mortgage requirements are among the factors dampening home buyer activity today.”
There were 5,279 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in June 2018. This represents a 7.7 per cent decrease compared to the 5,721 homes listed in June 2017 and a 17.2 per cent decrease compared to May 2018 when 6,375 homes were listed.
The total number of homes currently listed for sale on the MLS® system in Metro Vancouver is 11,947, a 40.3 per cent increase compared to June 2017 (8,515) and a 5.8 per cent increase compared to May 2018 (11,292). This is the highest this total has been since June 2015.
“With reduced demand, detached homes are entering a buyers’ market and price growth in our townhome and apartment markets is showing signs of decelerating.”
For all property types, the sales-to-active listings ratio for June 2018 is 20.3 per cent. By property type, the ratio is 11.7 per cent for detached homes, 24.9 per cent for townhomes, and 33.4 per cent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,093,600. This represents a 9.5 per cent increase over June 2017 and is virtually unchanged from May 2018.
Sales of detached homes in June 2018 reached 766, a 42 per cent decrease from the 1,320 detached sales recorded in June 2017. The benchmark price for a detached home is $1,598,200. This represents a 0.7 per cent increase from June 2017 and a 0.6 per cent decrease compared to May 2018.
Sales of apartment homes reached 1,240 in June 2018, a 34.9 per cent decrease compared to the 1,905 sales in June 2017. The benchmark price for an apartment is $704,200. This represents a 17.2 per cent increase from June 2017 and a 0.4 per cent increase compared to May 2018.
Attached home sales in June 2018 totalled 419, a 37.3 per cent decrease compared to the 668 sales in June 2017. The benchmark price of an attached home is $859,800. This represents a 15.3 per cent increase from June 2017 and is virtually unchanged from May 2018.
To view the entire statistics package click here
Monday, 4 June 2018
Reduced demand is allowing housing supply to accumulate
Home buyer demand continues to decline across the Metro Vancouver housing market.The Real Estate Board of Greater Vancouver (REBGV) reports that residential property sales in the region totalled 2,833 in May 2018, a 35.1 per cent decrease from the 4,364 sales recorded in May 2017, and a 9.8 per cent increase compared to April 2018 when 2,579 homes sold.
Last month’s sales were 19.3 per cent below the 10-year May sales average.
“With fewer homes selling today compared to recent years, the number of homes available for sale is rising,” Phil Moore, REBGV president said. “The selection of homes for sale in Metro Vancouver has risen to the highest levels we’ve seen in the last two years, yet supply is still below our long-term historical averages.”
There were 6,375 detached, attached and apartment properties newly listed for sale on the Multiple Listing Service® (MLS®) in Metro Vancouver in May 2018. This represents a 5.5 per cent increase compared to the 6,044 homes listed in May 2017 and a 9.5 per cent increase compared to April 2018 when 5,820 homes were listed.
The total number of properties currently listed for sale on the MLS® system in Metro Vancouver is 11,292, a 38.2 per cent increase compared to May 2017 (8,168) and a 15 per cent increase compared to April 2018 (9,822).
The total number of listings available today is 17.2 per cent below the 10-year May average.
For all property types, the sales-to-active listings ratio for May 2018 is 25.1 per cent. By property type, the ratio is 14.7 per cent for detached homes, 30.8 per cent for townhomes, and 41.7 per cent for condominiums.
Generally, analysts say that downward pressure on home prices occurs when the ratio dips below the 12 per cent mark for a sustained period, while home prices often experience upward pressure when it surpasses 20 per cent over several months.
“For home sellers to be successful in today’s market, it’s important to price your property competitively given the shifting dynamics we’re experiencing,” Moore said. “It’s also important to work with your local Realtor to better understand these changing conditions.”
The MLS® Home Price Index composite benchmark price for all residential properties in Metro Vancouver is currently $1,094,000. This is an 11.5 per cent increase over May 2017 and a 0.2 per cent increase compared to April 2018.
Sales of detached properties in May 2018 reached 926, a 40.2 per cent decrease from the 1,548 detached sales recorded in May 2017. The benchmark price for detached properties is $1,608,000. This is a 2.4 per cent increase from May 2017 and a 0.1 per cent increase compared to April 2018.
Sales of apartment properties reached 1,431 in May 2018, a 29.3 per cent decrease from the 2,025 sales in May 2017. The benchmark price of an apartment property is $701,700. This is a 20.2 per cent increase from May 2017 and a 0.1 per cent increase compared to April 2018.
Attached property sales in May 2018 totalled 476, a 39.8 per cent decrease from the 791 sales in May 2017. The benchmark price of an attached unit is $859,500. This represents a 16 per cent increase from May 2017 and a 0.6 per cent increase compared to April 2018.
Click here to download the full package.
Friday, 6 April 2018
Everything You Need To Know About the Provincial Government Tax Changes
Speculation Tax
After hearing from cottage owners around the province, Finance Minister Carole James sent her government's new speculation tax, announced in Budget 2018 and slated to come into effect in September, back to the drawing board.On March 26, 2018 she announced changes saying the new tax will now specifically target only speculators - those who "treat our housing market like a stock market, leaving homes vacant and driving up prices,” said Minister James.
Under this latest version of the speculation tax, more than 99 per cent of British Columbians and other Canadians who own vacation cabins and cottages on lakes and Gulf Islands won’t pay the tax, according to Minister James.
Geographic areas
Once implemented, the tax will now apply to:- Metro Vancouver;
- The Capital Regional District (excluding the Gulf Islands and Juan de Fuca);
- Kelowna and West Kelowna;
- Nanaimo-Lantzville; and
- Abbotsford, Chilliwack and Mission.
Rates
In 2018, the tax rate for all properties subject to the tax is 0.5% of the property value.In 2019 and subsequent years, the tax rates will be:
- 2% for foreign investors and satellite families;
- 1% for Canadian citizens and permanent residents who do not live in British Columbia; and
- 0.5% for British Columbians who are Canadian citizens or permanent residents (and not members of a satellite family).
Exemptions/tax credit
Owners of primary residences, and property that is a qualifying long-term rental, are exempt from the tax.A long-term rental is considered a property that’s rented out for at least six months out of the calendar year in increments of at least 30 days. In 2018, as part of the transitionary phase, a long-term rental is considered a property rented out for three months of that year.
British Columbians with vacant second homes will be eligible for a non-refundable tax credit that’s immediately applied against the speculation tax.
This tax credit will offset a total of $2,000 in speculation tax payable and ensures British Columbians do not pay tax on a second home valued up to $400,000.
Special case exemptions
These include:- The owner or tenant is undergoing medical care or residing in a hospital, long-term care or a supportive-care facility.
- The owner or tenant is temporarily absent for work purposes.
- The registered owner is deceased, and the estate is in the process of being administered.
Revenue
BC Budget forecasts revenue of $200 from this tax. The amount isn’t expected to change.Foreign Buyer Tax
The tax on foreign nationals, who are not permanent residents of Canada, has been increased to 20%. It applies to Metro Vancouver, Fraser Valley, Capital Region, RD of Nanaimo and Central Okanagan RD. It is effective immediately with an exemption for contracts written before February 20, 2018 with a closing date before May 31, 2018Property Transfer Tax
The Property Transfer Tax will increase on properties over $3million from 3% to 5% on the portion that is over $3millionHidden Ownership
Additional information on beneficial ownership of corporations will be required on property transfer forms. A registry of all beneficially-owned property will be established and publicly available. Corporations will be required to hold accurate information on all beneficial owners.Tax Fraud
The Provincial government will collect information on pre-sales and assignments of contracts from developers. This database will be shared with provincial and federal tax authorities to insure compliance.
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